Workflow not completing from AD Groups

I have run into an issue when setting up an automatic workflow that it will not run fully if the initializor is in an active directory group and in a group lower than contribute. The workflow runs against a list and populates other lists based on information entered.

(Background) The workflow is wrapped in an app step to run the workflow as most of the users are not allowed to have contribute access or above. They are all part of the add item group.

The workflow completes successfully if the user is added directly to a SharePoint group but if it is added to a SharePoint group via AD it runs until the end of the first stage of the workflow with the following error message:
RequestorId: 34554d05-b68b-5dca-c786-399da6060021. Details: System.ApplicationException: HTTP 404 {"error":{"code":"-1, System.ArgumentException","message":{"lang":"en-US","value":"Item does not exist. It may have been deleted by another user."}}} {"Transfer-Encoding":["chunked"],"X-SharePointHealthScore":["0"],"SPClientServiceRequestDuration":["51"],"SPRequestGuid":["1f9479ef-1e4c-4e96-aaef-6a82f93ad7c1"],"request-id":["1f9479ef-1e4c-4e96-aaef-6a82f93ad7c1"],"X-FRAME-OPTIONS":["SAMEORIGIN"],"MicrosoftSharePointTeamServices":["15.0.0.4569"],"X-Content-Type-Options":["nosniff"],"X-MS-InvokeApp":["1; RequireReadOnly"],"Cache-Control":["max-age=0, private"],"Date":["Tue, 08 Dec 2015 15:24:40 GMT"],"Server":["Microsoft-IIS/8.5"],"X-AspNet-Version":["4.0.30319"],"X-Powered-By":["ASP.NET"]} at Microsoft.Activities.Hosting.Runtime.Subroutine`1.SubroutineChild.Execute(CodeActivityContext context) at System.Activities.CodeActivity.InternalExecute(ActivityInstance instance, ActivityExecutor executor, BookmarkManager bookmarkManager) at System.Activities.Runtime.ActivityExecutor.ExecuteActivityWorkItem.ExecuteBody(ActivityExecutor executor, BookmarkManager bookmarkManager, Location resultLocation).

The site uses claims based authentication and the security token caching has been configured as per this article :

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